AUDCHF with a clean bearish setup

One of the worst currencies among the majors is the AUD. That was a thing in the last week but also can be seen at the beginning of the new one. In this analysis, I would like to show you the situation on the AUDCHF as I find it very technical and the situation here is definitely worth considering.

The setup here is very strong from the price action point of view and should bring us few pips of profit. The pair is in a deep downtrend. In the second half of the September, we had a bullish correction (wedge, pink lines). This correction ended with a bearish breakout and a sell signal. In addition to a lower pink line, the price also broke the horizontal support on the 0.703 (green), which additionally strengthened the negative approach.

The second half of Monday brings us a small reversal but for the mid-term situation it seems rather meaningless and maybe it will be used by the dominant sellers to open positions with better (higher) prices. The sell signal is on, as long as we stay below the green line.

This article is written by Tomasz Wisniewski, a senior analyst at Alpari Research & Analysis